ExxonMobil Acknowledges "Asset Impairment Risk Due to Climate Change"

(Photo by Reuters)

[Asia Economy Reporter Yujin Cho] ExxonMobil, the largest oil company in the United States, has acknowledged the risk of impairment to certain assets such as crude oil and gas due to climate change.

In a securities filing submitted on the 3rd (local time), ExxonMobil stated, "We will assess asset impairments related to climate change within the context of overall corporate risks during the board's annual asset evaluation period."

Foreign media have evaluated this as a change following the activist fund 'Engine No. 1', which has voiced concerns about climate change, securing three seats on ExxonMobil's board through a shareholder vote in May.

ExxonMobil has shown a relatively passive stance on climate change response compared to European oil companies.

The board plans to evaluate the impact of factors such as future energy supply, regulations, government policies, and greenhouse gas limits on assets. However, it added that it is difficult to reasonably estimate the potential impairment or the extent of impairment until the asset recoverability assessment is completed.

ExxonMobil also pointed out that climate change is a global issue requiring cooperation among governments, private companies, and consumers to develop meaningful solutions.

Last week, ExxonMobil announced quarterly earnings and stated that it plans to invest $15 billion (approximately 17.7 trillion KRW) in carbon emission reductions from 2022 to 2027.

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